April 12 (Renewables Now) - The global energy storage market is forecast to reach 158 GWh in 2024, marking a thirteenfold expansion from 2018, with the US and China taking leading positions in terms of deployments, a new report says.
Projections indicate that deployments over the next six years will grow from 12 GWh in 2018, which saw the addition of 6 GWh of capacity.
According to the report "Global Energy Storage Outlook 2019: 2018 Year in Review and Outlook to 2024" by Wood Mackenzie Power & Renewables, the massive expansion will be the result of USD 71 billion (EUR 62.7m) worth of investment into energy storage systems, excluding pumped hydro, in the period under review, with USD 14 billion of the total expected to come in 2024 alone. The US and China will lead the global industry, being responsible for around 54% of all deployments by 2024. Next will come Japan, Australia and South Korea, followed by Germany, Canada, India and the UK.
The key storage markets between 2019 and 2024 are forecast to expand at a compound annual growth rate of 38% and witness a broader set of money-making opportunities. The industry, meanwhile, will see a shift from short to long-duration systems that can begin to displace diesel, oil and natural-gas peaker plants.
In geographical terms, the US will remain the largest energy storage market globally by 2024. After switching on a record 777 MWh of capacity last year, the country will double deployments in 2019 and triple them in 2020, according to the US Energy Storage Monitor by Wood Mackenzie and the Energy Storage Association (ESA). The states of California, New York and Massachusetts will be the major drivers of growth, while Hawaii, Texas, Minnesota and Colorado, where utilities bet on storage both in individual projects or as part of large-scale solar installations, will contribute as well. Additionally, new market opportunities are seen to be available after the regional wholesale market operators were ordered to open up energy, capacity and ancillary services markets to energy storage.
China, the second industry leader, expanded its energy storage market by 40% year-on-year in 2018 by adding almost 500 MWh. Its future growth will be based on a 10-year plan to develop the domestic grid-scale energy storage industry.
South Korea, meanwhile, is pushing expansion through a new policy allowing storage linked to solar and wind projects to get renewable energy certificates. It has already surpassed its goal of having 800 MWh of energy storage by 2020 with 1,100 MWh of deployments in 2018.
The Australian market has been driven by solar-plus-storage projects in the residential sector, adding 300 MWh in 2018 that made it the world’s first in terms of residential storage deployments. The second and third spots in the residential storage segment was taken by Japan and Germany, respectively.
(USD 1.0 = EUR 0.883)